ISLAMABAD: Pakistan International Airlines Corporation’s revenue for the first nine months of the calendar year 2022 (CY22) stood at Rs120.6 billion compared to Rs49.4 billion over the same period the year before, registering a mammoth 144% growth year-over-year.
The state-owned national flag carrier also managed to bring its gross loss down to Rs4.5 billion during the 9MCY22 from Rs10.6 billion over the same period the prior year.
During 9MCY22, the company’s loss-after-tax, however, increased to Rs67.4 billion from Rs42.7 billion over the same time of the year before, posting an increase of 58%.
Due to ongoing financial pressure and liquidity issues, PIA had to increase borrowing to cover its working capital requirements. Finance costs increased by 78% as a result. Additionally, PIA experienced an exchange loss of Rs21,932 million during the period under review as opposed to Rs5,180 million in the same period the previous year. The enormous devaluation of the Pakistani rupee against the US dollar was the primary cause of the 3.2 times increase in the exchange loss, reports WealthPK.
Industry Comparison
Private airlines outperformed PIA during the period under review as they made a collective return of 2.9% to their shareholders compared to PIA’s loss per share of 2.0%.
PIA has also been bearing a loss per share during recent years. During CY18, the LPS was Rs12.86, which decreased to
Rs6.62 in CY20, but rebounded to Rs9.67 in CY21.
About the company
PIA was incorporated in Pakistan on January 10, 1955. The principal activity of the corporation is to provide commercial air transportation, including passenger, cargo, and postal carriage services. Other activities of the corporation include the provision of engineering and other allied services.
